BRS hit by triple whammy!, page-6

Mergers can be tricky. I'd prefer DOW just buy BRS outright for say $1.80. SP finally moving. Now at 1.245. I also forgot to mention BRS stated 'the company expects underlying EBITDA for FY17 to be in excess of 300million.'

Lets look at some calcs:
FY15 EBITDA was 265m giving underlying NPAT of 72m = EPS of 14.0c.
Fy16 EBITDA of 290m gives underlying NPAT of aprox 78.8m and guesstimated EPS of 15.3c.
FY17 (expected) EBITDA of 300m gives underlying NPAT of aprox 81.5m and estimated EPS of 15.9c.
Tax increases, but interest decreases as the debt is rapidly reduced.

SP of 122c/15.9 = PE 7.67x. Not bad for a company that has revenue locked-in for the next 18 months and plenty time to win additional contracts.

These are my own estimates. dyor.